Loss adjuster picked lowest quote and less work

incubus1980

Hi,

I have been fortunate enough to be claim free on my home insurance for 13 years......until this year . I am very inexperienced in the process and hoping someone can help me make sense of it.

Two claims in, one rejected and one accepted. The rejected claim was for a childs play fort that was destroyed in the wind we had last month.

The claim that was accepted is for water escape from an en-suite shower. The waste trap has been leaking and damaged the floor, wall plaster and the ceilings in the rooms downstairs. One of the rooms adjacent to the shower also shows signs of water damage. The loss adjuster attended and agreed it was a valid claim. They appointed two approved building firms to come and provide quotes and they have done so with an itemized list of work. There is roughly £2000 difference in the quotes but the more expensive one is wanting to do more work; replace the plaster rather than treating it and also replace the flooring rather than reusing it.

The loss adjuster has told me that he will only approve the cheaper quote and if I want a cash settlement I will have to accept the lower quote minus the VAT. Both building firms could only confirm the exterior damage visually and by using a damp probe.

The higher quoting firm are assuming that the damage is bad enough to need replacement plaster and floor whereas it appears the cheaper firm are going for less work and reusing more of what they take out. If the lower quoting firm find there are problems once they are doing the work they can ask for more money from the insurance (not guaranteed).

The motives of the loss adjuster are obviously to save money. The motives of the building firms are to get the job (and lowest bid is likely to win). The loss adjuster is not qualified to decide what works need done and what is just excess so how can he just dismiss the other quote without another opinion in the matter. I'm not an expert either but I see one builder saying one thing and another builder something else. Who to trust.....not necessarily the cheapest one! I just want enough money to cover the job and have it done right.

Any advice?

John

InsideInsurance

Assuming the insurer is paying their approved builders directly then they will be on the hook that they do a good enough job so if the lower priced builders assumptions are proven wrong then they will have to go through the loop of having the additional work authorised which may take a little extra time but wont ultimately impact the end result.

If they want to give you the money and you pay the builders then there are more things to be concerned about and may be worth getting a complaint in before accepting the monies.

Have you had your own builders quote for the work yet?

dacouch

incubus1980 wrote: »

Any advice?

John

Yes, have a read of Flamecloud's excellent posts on this thread which explain why there may be a difference between your Builder and (I assume) the Insurers builder

https://forums.moneysavingexpert.com/discussion/5213112

skintpaul

can you get a third quote, somewhere in between- impress on surveyor the need for a 'proper' repair to be noted.

InsideInsurance

incubus1980 wrote: »

They appointed two approved building firms to come and provide quotes

dacouch wrote:

this thread which explain why there may be a difference between your Builder and (I assume) the Insurers builder

Sounds like to me that both builders were appointed by the loss adjuster and not a case of the OPs builder -v- the Insurer's

incubus1980

Thanks for all the replies.

Both builders were assigned by the insurance company. I don't know any builders other than what I could pick out of the phone book so I told them to appoint their own. The problem with not using the insurance approved builders is that if they find any problems once they start removing tiles etc then the chances of having the extra work covered are very low according to the loss adjuster.

The lower quote did have a note on it that said there was a high likelihood that they would damage the plinth when they removed the shower tray and that the tray was likely to be warped. They did not quote for this even though the chances it will need added on are high by their own admission.

When I brought up the fact that the lower quote does not include replacing plaster the adjuster said that they won't paint it until it dries out and I am happy with it. From quick google searches some people are saying it can take weeks/months to dry plaster out; I don't want this dragging on for possible months.

I think the idea of getting a third quote is good and I will ask the loss adjuster to appoint a 3rd builder to quote just to see how they compare.

I think the fact a builder can under quote knowing they can top up whilst doing the work is quite outrageous and is likely to lead to lots of delays.

I'll post back with the findings of the 3rd quote and what the adjuster makes of its.

Thanks,

John.

InsideInsurance

incubus1980 wrote: »

I think the fact a builder can under quote knowing they can top up whilst doing the work is quite outrageous and is likely to lead to lots of delays.

I'll post back with the findings of the 3rd quote and what the adjuster makes of its.

They are there to try and win business and generally price is king. Insurers monitor the number of complaints/ reworks their suppliers attract as ultimately losing customers due to a bad experience is going to cost money too but generally they are reasonable providers though rarely the best in the business.

I'd be surprised if they are willing to do a third quote for you but it shouldnt be too difficult to get your own quote if you dont mention the 'I' word.

I am not a DIY expert but gut reaction is that it wont take months with an industrial heater to dry out a damp wall unless you have some very odd construction.

incubus1980

The loss adjuster has agreed to the 3rd quote and has instructed another building firm to come and assess the damage.

There was no talk or quotes for getting heaters in for drying the walls but he did think it shouldn't take long as its just plasterboard with a skimming of plaster as opposed to stone walls which would take much longer.

I guess I'll know better once the 3rd firm have been. If they are saying the plaster needs to come down and be replaced then i'll be pushing for that otherwise I guess the cheaper quote wins.

Work-in-progress

Hi Incubus1980.

I know exactly how you're feeling - I've been there with an escape of water about 2 years ago. (In the profession I'm in I am exceptionally lucky to have a deeper understanding of insurance claims than your average person). I just wanted to let you know that you have final say on who works on your home-don't be bullied! I would always be a bit more cautious when dealing with a home - you don't want years of problems because the work was not carried properly. If you can get an independent surveyor to look at the works involved that would by far be your best move! The adjuster would find it hard to argue with a surveyor's findings. Although with the small claim value the surveyor's costs might not be covered by the insurers-but if it saves you years of issues I'd say very worth it!!
There is a risk to your property if it is not dried out effectively and can cause future problems like dry rot (which are not covered by insurance btw!! Wonder why the adjuster doesn't seem too concerned about this?!)
Don't want to sound scary but just make sure you aren't being fobbed off with the cheapest options when this can cause you years of issues and more expense!
Best of luck!!!!!!!

incubus1980

Ok, so the third builder has been in and his quote is in the middle of the other two.

His quote states pretty much the same work as the higher quote. Do I have a case to go to the loss adjuster now and say that two builders are saying one thing and one is saying something else (but might end up doing the same work anyway)?

I've got a funny feeling i'm going to be typing a letter up to the financial ombudsman soon

John

incubus1980

Update.

The loss adjuster has finally agreed to up the cash settlement. The middle quote was coming in at £3450 and he says he will give me £3300. I queried the £150 difference and he said that the building firm would probably put a lower bill in anyway when the work is complete (which sounds like absolute nonsense to me).

I'll probably just accept this as I just want it finished as he is becoming a bit nippy with me; not returning calls or emails and when I challenged him on his lack or responses he gives me some story about how my phone must be broken as he has been calling me. Not a good experience at all.

Thanks for all the advice/links guys.

John.